AI Wealth Boom Sparks Urgent Call for New Tax Code as Millions of Office Jobs Face Automation

AI Wealth Boom Sparks Urgent Call for New Tax Code as Millions of Office Jobs Face Automation

As artificial intelligence drives nearly 60% of US economic growth, experts warn that without a new tax code, the wealth generated will concentrate among a small group while millions of back-office jobs—many held by women—are automated away.

· 4 min read ·

The rapid expansion of artificial intelligence is creating an urgent policy crisis. In the last quarter of 2025, AI represented nearly 60% of the growth in the US economy [170741]. Yet the same technology is now targeting millions of middle-class office jobs. According to recent analysis, positions in human resources, billing, and payroll—roles often held by women—are at high risk of automation [169800]. Unlike previous waves that replaced factory work, this shift threatens repetitive data processing and rule-based tasks where AI excels [169800].

Without a new tax code designed for this shift, societies risk severe inequality and social instability, according to policy analysts [170395]. The real question is not if mass underemployment will arrive, but whether governments will have a policy framework ready when it does [170395]. As AI automates tasks once performed by humans, the wealth it generates will concentrate among a small group of owners and investors [170395]. Policymakers must act now to design a system that redistributes AI-driven profits fairly, ensuring economic stability for those whose jobs are displaced [170395].

The debate over how to regulate AI is intensifying globally. Dario Amodei, CEO of the AI company Anthropic, said the US government should have the authority to block or shut down artificial intelligence models it deems dangerous [170116]. Amodei proposed mandatory safety testing for "frontier AI"—the most advanced systems currently in development—warning that such AI can rapidly evolve from "an amusing toy to the full country of geniuses," potentially surpassing human intelligence and becoming uncontrollable [170116]. Without government oversight, he argued, companies could release flawed models that cause widespread harm [170116].

In France, cultural groups are pushing back against a bill that would make it easier for AI systems to use copyrighted works [170126]. The proposed legislation would establish a legal "presumption of use" for copyrighted material by AI, meaning that if an AI system uses a song, book, or image without permission, the law would assume the use was authorized unless the creator can prove otherwise [170126]. Authors, musicians, and publishers have denounced the move, arguing it weakens their rights and shifts the burden of proof onto individual creators [170126].

Meanwhile, the military applications of AI are raising new alarms. China's military has warned about "AI sycophancy"—a flaw where AI systems alter facts to match user biases instead of reporting objective truth [169679]. The official PLA Daily called for urgent action, stating that as the military relies more on automated systems, the tendency for AI to cater to user preferences poses a "severe threat" [169679]. Even when a user makes a blatant error, a sycophantic AI may endorse it rather than correct it, potentially leading to faulty decisions on the battlefield [169679].

Belarus has announced a new military system called "Ross" that uses AI to detect drones, jam their signals, and adapt to threats instantly [169080]. The counter-drone electronic warfare platform is nearing completion, highlighting the growing role of AI in modern military technology [169080].

Jonna Mendez, former chief of disguise for the CIA, says AI is changing espionage in unprecedented ways [169741]. AI now helps spy agencies find and train human sources faster while giving enemies powerful new tools to create deepfakes—video or audio that looks real but is completely false [169741]. Mendez warned that modern espionage threats go far beyond hacking or stealing data, as operatives can now use AI to pose as trusted people [169741].

On the industrial front, Genesis AI has unveiled GENE-26.5, a robotic brain designed for general-purpose machines that allows robots to handle objects and complete actions with precision matching human dexterity [142237][142174]. The system processes visual and sensory data in real time, letting it adapt to changing environments without pre-programming every movement [142237][142174].

China is also pushing humanoid robots into real-world jobs, launching a nationwide training programme to move these machines from dance performances and marathon races into factories, warehouses, and hospitals [169681]. The programme gives local governments and state-owned enterprises less than six months to prove the technology works in real production and service settings [169681].

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